Hierarchical Assignments: Stability and Fairness
We study a simple model of the job market, where workers are assigned to employers. We specify conditions under which the market is hierarchical in a natural sense. For such hierarchies, we can state explicit values for the earnings in the worker-optimal and employer-optimal solutions. This is a discrete analogue to the Ricardian differential rent model of Sattinger (1979). We discuss the compatibility problems between fairness and stability of earnings and assignments and argue for a certain solution.
|Date of creation:||27 Oct 1997|
|Date of revision:|
|Publication status:||Published in Mathematical Social Sciences, 2000, pages 109-118.|
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"Reorganization of Firms and Labor-Market Inequality,"
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- Lindbeck, A. & Snower, D.J., 1996. "Reorganization of Firms and Labor Market Inequality," Papers 605, Stockholm - International Economic Studies.
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"Two-Sided Search, Marriages, and Matchmakers,"
International Economic Review,
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